Ginkgo Bioworks (US:DNA)2025-05-06 21:04Revenue and Financial Performance - Ginkgo's revenue from Cell Engineering primarily comes from license and collaboration agreements, with service fees structured as upfront payments, milestone payments, and downstream value share payments [141]. - Cell Engineering revenue increased to $38.2 million for the three months ended March 31, 2025, up from $27.9 million in the same period of 2024, representing a growth of 37.0% [167]. - Total revenue for the three months ended March 31, 2025, was $48.3 million, compared to $37.9 million in 2024, marking an increase of $10.4 million or 27.4% [166]. - Net loss for the three months ended March 31, 2025, was $90.9 million, compared to a net loss of $165.9 million in the same period of 2024, reflecting an improvement of $74.9 million [166]. - Adjusted EBITDA for Q1 2025 was $(47.5) million, compared to $(117.0) million in Q1 2024, indicating a significant reduction in losses [187]. - The company reported a net loss of $91.0 million for Q1 2025, adjusted for a net change in operating assets and liabilities of $11.6 million and non-cash charges of $51.0 million [193]. Research and Development (R&D) Expenses - The company reported a decrease in R&D expenses in Q1 2025 compared to Q1 2024, attributed to the restructuring plan [153]. - Research and development expenses decreased to $70.9 million in Q1 2025 from $136.5 million in Q1 2024, a reduction of 48.0% [174]. - The company plans to continue R&D activities and invest in its Foundry and Codebase [191]. General and Administrative (G&A) Expenses - General and administrative expenses fell to $49.0 million in Q1 2025, down from $70.3 million in Q1 2024, a decrease of 30.1% [175]. - The company anticipates that G&A expenses will either remain consistent or decline in 2025, reflecting the impact of restructuring actions [155]. Restructuring Plan - Ginkgo's restructuring plan, initiated in Q2 2024, is expected to stabilize R&D and G&A expenses, with a focus on prioritizing investments in Foundry, Codebase, and cell engineering tools [153][155]. - Restructuring charges include severance costs and asset impairments due to facility consolidation, with reductions in force expected to be substantially completed in 2025 [157]. - The company incurred restructuring charges of $5.3 million in Q1 2025 related to its restructuring plan, which began in Q2 2024 [176]. - Restructuring charges in Q1 2025 included employee termination costs from a reduction in force initiated in June 2024 [190]. Biosecurity Services - Ginkgo's biosecurity services include two core offerings: Canopy and Horizon, aimed at biomonitoring and bioinformatics support, with partnerships established domestically and internationally [149]. - The cost of Biosecurity revenue includes expenses related to sample collection, laboratory analysis, and customer support, which are recognized as services are performed [151]. Cash Flow and Investments - Cash and cash equivalents, along with marketable securities, totaled $516.9 million as of March 31, 2025, sufficient to fund projected operations for at least the next 12 months [189]. - Net cash used in operating activities for Q1 2025 was $51,521,000, compared to $89,259,000 in Q1 2024, indicating a decrease in cash outflow [192]. - Cash used in investing activities for Q1 2025 was $198,684,000, primarily due to purchases of marketable debt securities of $191.2 million [195]. - The company had cash equivalents and marketable debt securities totaling $483.8 million as of March 31, 2025, which are exposed to interest rate risk [202]. - The net decrease in cash, cash equivalents, and restricted cash for Q1 2025 was $250,338,000, compared to $102,371,000 in Q1 2024 [192]. Changes in Commercial Terms - Changes to commercial terms for new customer contracts were announced in Q2 2024, including revised intellectual property terms and the removal of downstream value share from certain program types [144]. Future Plans and Acquisitions - The company aims to potentially acquire and integrate companies or assets that align with its objectives [198]. Other Financial Metrics - Interest income, net decreased to $6.1 million in Q1 2025 from $11.7 million in Q1 2024, a decline of 52.1% [178]. - Loss on investments increased to $3.7 million in Q1 2025 from $2.5 million in Q1 2024, an increase of 48.0% [179]. - Foreign currency translation gain was $0.8 million for Q1 2025, compared to a loss of $3.0 million in Q1 2024 [203]. New Offerings - In Q3 2024, Ginkgo launched new cell engineering tools offerings, including Datapoints and lab automation solutions, aimed at providing large biological datasets for AI model training [145]. - Ginkgo's Foundry and Codebase enhancements are expected to improve service delivery and efficiency in biological R&D [133][136].